By Staff Reporter
NAREDCO’s National Vice Chairman Niranjan Hiranandani has applauded the balanced mechanism implemented by the RBI Governor while withdrawing accommodation. “Keeping the repo rate at 6.5% reflects the importance of anchoring inflation on the radar while maintaining economic growth buoyancy. Since inflationary pressure, unaffordability, and lack of new development have contributed to persistently high interest rates on home loans, affordable housing has been adversely affected. As a result, affordable housing, which comprises a substantial portion of the housing pyramid, has seen a decline in demand. The Government of India has announced an additional interest subsidy of Rs 60,000 crore for homes up to Rs 40 lakh to boost small urban housing. Moreover, under the festive tailwind, the demand for home loans is expected to remain buoyant, which indicates strong housing sales growth. Home sales have increased by 35% yoy, demonstrating consumer demand resilience across key metros and tier cities for mid- and luxury housing. Based on current external and internal circumstances, India is undoubtedly poised to serve as the world’s new growth engine, with a GDP growth rate expected to be 6.8% for FY 23–24.”
